Your roadmap for handling a dispute
When a cardholder initiates a dispute, a specific workflow is triggered. Here is exactly what happens and what you need to do:
Notification of the dispute: When a dispute is registered in the system of our card payments partner, Montonio will notify you via email. To help you respond effectively, this email will include:
Transaction details: The specific order and payment information.
Reason for the dispute: The exact claim the customer has made to their bank.
Review the deadline: We will provide you with a deadline to respond. Please note that this deadline can vary a lot depending on the bank and the specific card network rules, so it is vital to check each notification carefully.
Choose your path:
Accept: If you agree with the customer or do not have evidence to fight, you can choose to accept the dispute.
Contest: If you believe the charge was valid and wish to fight for your funds, you must prepare your documentation.
Submit documentation to Montonio: If you wish to contest, you must respond to us within the provided timeframe and present all necessary documentation.
Montonio submits evidence: Montonio acts as your technical intermediary. Once we receive your evidence, we will upload the documents on your behalf to our card payments partner, who will then submit them onwards to the issuing bank for review.
The waiting period: The bank can take up to 90 days to review the case. We will notify you as soon as a final decision is reached.
Why a response is critical: If we do not receive a reply from you within the given timeframe, or if the required documentation is not provided, you will be unable to defend the claim. In these cases, the dispute is automatically decided in favour of the cardholder, and the funds will be permanently returned to them.
Common dispute categories and required documentation
The following table outlines the most common dispute reasons and the compelling evidence needed to successfully challenge them:
Dispute Reason Category | Examples of Reason Codes | Merchant Documentation Required |
Service/Product Issues | Goods or Services Not as Described. Faulty or Defective Goods. | Proof of delivery/shipping tracking. Photos of the product before shipping (if applicable). Merchant refund/return policy. Detailed communication logs with the customer attempting to resolve the issue. |
Cancellation/Refund Issues | Canceled Recurring Transaction. Credit/Refund Not Processed. | Proof the service was canceled correctly (e.g., cancellation email with date). Proof a refund was processed. Copy of the cancellation policy. |
Processing Errors | Duplicate Processing. Incorrect Transaction Amount. | Proof that only a single transaction occurred. Invoice/order confirmation showing the correct and authorized amount. |
Fraudulent/Unauthorized | No Cardholder Authorization. | Proof the transaction was legitimate: IP address, device ID, AVS/CVV match results, proof of 3D Secure authentication. |
Non-Receipt | Goods or Service Not Received. | For Tangible Goods: Detailed shipping/tracking confirmation showing delivery to the cardholder's address. |
General compelling evidence guidelines
To strengthen any defence, regardless of the reason, you should always include these fundamental documents:
Sales Invoice/Order Confirmation: Clear document showing the items purchased, the total price, and the transaction date.
Terms and Conditions: A copy of the T&Cs the cardholder accepted at the time of checkout, and where the customer was asked to accept the terms.
Specific evidence lists for common dispute reasons
For the most frequent dispute reasons, gather and provide the following specific documents:
"Product not received" (non-receipt)
"Product not received" (non-receipt)
The goal is to prove the goods or services were successfully delivered to the cardholder's specified address/access point.
Order confirmation & invoice: Standard documents confirming the purchase details.
Delivery documents:
Tracking number: Full tracking history showing the final delivery scan and date.
Proof of Delivery (POD): A delivery document that confirms receipt, especially a document with the customer's physical signature.
Evidence of digital access: For digital goods, provide logs showing the customer successfully accessed, downloaded, or used the service (IP address, login timestamp, etc.).
Communication records: Screenshots or copies of emails/chats where the customer acknowledges the delivery, discusses usage, or inquires about a delivery delay.
Any supporting documents you believe would convincingly support your case.
The risk of missing a signature (POD): While a tracking link showing "Delivered" is useful, many banks do not consider it absolute proof of receipt if the customer claims the package was stolen or never arrived. To give yourself the best chance of winning, a signed proof of delivery (POD) is recommended. Without a signature, it is often very difficult to overturn the issuing bank's initial decision.
"Product unacceptable" (not as described/defective)
"Product unacceptable" (not as described/defective)
The goal is to prove the product was delivered as ordered, met the description advertised, and that the customer failed to follow your stated return/refund policy.
Order confirmation & invoice: Standard documents confirming the purchase details.
Delivery documents: (Same as above) Confirming the physical item was delivered.
Proof the product matched the order:
Screenshots from your online store: The specific product page showing the exact description and images the customer saw when ordering.
Photos/videos of the delivered product (if available) proving its condition upon shipping.
Terms of Service/Return Policy: Specific screenshots of the terms on your store outlining return specifics, refund windows, and conditions.
Communication records: Detailed logs showing the merchant offered a solution (repair, replacement, or refund) that was either refused or not utilized by the customer.
Any supporting documents you believe would convincingly support your case.
"Fraudulent" (unauthorized transaction)
"Fraudulent" (unauthorized transaction)
The goal is to prove the payment was authorized by the actual cardholder, usually through security measures.
Order confirmation & invoice: Standard documents confirming the purchase details.
Delivery documents: Proof that the goods were shipped to the address provided during the checkout process. A delivery document with the customer's signature is highly powerful, as a fraudster usually cannot provide this.
Security & authentication data:
Proof of successful 3D Secure authentication: This is the most crucial piece of evidence as it shifts liability.
If a transaction was protected by 3DS, card payment system automatically tracks this security data. In the event of a dispute, Montonio can submit this 3DS authentication information on your behalf to the card networks. This significantly increases your chances of a successful defence.
IP Address, email address, and device ID used during checkout.
Screenshots of communication with the customer (e.g., confirmation of order details).
Any supporting documents you believe would convincingly support your case.
Read more about contesting fraudulent disputes here.
💡 Best practices for your evidence package
To give yourself the highest chance of winning, your documentation must be clear, organized, and professional. Think of this as your formal business defence presented to the bank to prove the transaction was legitimate.
When it comes to disputes, the "rule of thumb" is that you can never provide too much information. The burden of proof is on you as the merchant; the more high-quality evidence you provide, the better your chances of winning the case. Don't assume the bank knows your business—show them exactly how you fulfilled your promise.
1. Focus on "Compelling evidence"
The bank is looking for objective proof that you fulfilled your end of the deal. Here are some examples of what you should include depending on the situation:
The signed POD (Proof of Delivery): This is your strongest defence. While a tracking link is helpful, a document showing the customer’s signature at their delivery address is the best proof against "Product not received" claims.
Proof of fulfillment for digital goods: If you sell digital products, provide system logs showing the date and time the customer downloaded the file or logged into your platform, along with the IP address used.
Customer communication: Include screenshots of emails or chat logs where the customer acknowledges receiving the order, confirms their address, or expresses satisfaction with the purchase.
Your Terms and Conditions: Provide a copy of your refund and return policy, specifically highlighting the sections the customer agreed to at checkout.
Order continuity: If the customer has ordered from you before without issues, providing a summary of that successful history shows a pattern of legitimate activity.
2. Technical requirements
If your files don't meet these technical standards, the banking systems may automatically reject them:
Requirement | Specification |
Accepted Formats | PDF, JPEG, or PNG only. |
Total Size | The combined size of all files must be under 5 MB. |
No Text Files | Never send .txt files. Copy-paste email text into a Word doc and save it as a PDF. |
Legibility | Ensure all text, tracking numbers, and signatures are clearly readable. |
3. Quick tips
Combine your files: Instead of sending 10 separate images, combine them into one organized PDF. This makes it much easier for the bank clerk to review your case.
Highlight key info: Use a highlighter tool on your PDF to point out the delivery date, the customer's name, and the "Delivered" status.
Be concise but thorough: The bank representative spends very little time on each case. Keep your evidence direct and focused on the specific reason for the dispute.
❗Refund availability during a dispute
Once a customer initiates a dispute with their bank, the transaction enters a restricted state because the funds are already being "held" by the banking network.
Standard refunds are disabled: The option to issue a regular refund through Montonio Partner System becomes unavailable. This is a technical safety measure to prevent "double-spending" the same funds.
❌ Do not refund via outside methods: Since the refund for a disputes payment will be rejected, you might be tempted to send a direct bank transfer to the customer. Please avoid this. If you pay the customer externally while the dispute is active, you risk a double loss of funds, as the bank may still finalize the dispute and deduct the money from your account again.
The solution — Accept the dispute: If you have already agreed to a refund, or if you simply wish to give the customer their money back, the correct path is to accept the dispute. Accepting the dispute tells the bank that you agree with the claim. The bank will then use the funds they are already holding to pay the customer, which closes the case safely without any risk of a double payment.
Montonio's role in the process
As your payment partner, Montonio acts as the bridge between your business and the card networks. We provide the tools and support you need to manage disputes effectively:
Keeping you informed: We alert you as soon as a dispute is opened so that you have as much time as possible to review the details and decide on your next steps.
Handling the submission: Once you’ve gathered your evidence, we take care of the technical side by submitting the documents on your behalf.
Notifying you of the outcome: Once the bank reaches a verdict, we will notify you of the final decision via email.
Who makes the final decision?
The final verdict on whether to accept or reject your evidence is made exclusively by the Issuing Bank (the customer's bank) according to international card scheme rules. Because the outcome is decided by the bank based on their specific regulations, the success of a contest depends entirely on the quality and timeliness of the evidence you choose to provide.
The 90-day window: The issuing bank can take up to 90 days to review the evidence and reach a final verdict.
Notification: As soon as we receive the bank's decision, we will notify you immediately via email to confirm whether the dispute was won or lost.
If you have additional questions and need our help, feel free to contact our support team via the chat in the bottom right corner.